What Are The Top Considerations For Borrowing Money Against Car?

If you’re in need of money to manage unexpected expenditure especially when you have lost your job or have hit by an enormous, out of the ordinary bill, which is beyond insurance coverage. Well, in such circumstances, surely you’ll look out for places from where you can avail a cash loan. If all other options fail such as availing cash loan from banks and other financial institutions, you can surely opt for a cash loan from a reputed vehicle pawnbroker. Yes, you heard it right! You can borrow money against your car, ute, van, 4x4, boat, truck or any other vehicle that is in good running condition and get quick cash loan.

Here are the top considerations that you need to know when availing a short-term cash loan from a vehicle pawnbroker:

When You Pawn – Only a Percentage of the Vehicle’s Value Can Be Borrowed

When you pawn your vehicle for a short-term cash loan, you’re not going to get the full value of your car; rather, you’ll get a percentage of the vehicle’s value depending on the condition of your vehicle.

Pawn Receipt

When you pawn your vehicle, pawnbroker will give you a receipt in return – this is a receipt as well as your credit agreement, so it holds weight in the eyes of law. Once you have availed the loan, and if you lose the vehicle-pawn-receipt and somebody else finds it then they can redeem the vehicle that you’ve pawned. So you need to be extra careful about the pawn receipt.

No Credit Check Cash Loans

Typically, pawnbroker’s loan is secured against your vehicle or asset of value instead of a personal loan, so when you want to pawn your vehicle, you’re eligible for a no credit check cash loan!

Loan Term & Repayments

Typically, you can pawn vehicle for up to three months duration; however, you can extend the term by one month upon prior request and by paying off any accrued outstanding interest, as well as, the interest for the extended month in advance. Moreover, you can pay off your vehicle pawn loan early if you want and it won’t attract any penalty plus you need to only pay the interest for the time you used the loan. For instance, after one month if you come to redeem your vehicle then you have to pay the loan amount along with interest for just one month and that you need not pay interest for all three months as per the contract signed initially. Alternatively, you can redeem your vehicle after three months, paying off the loan amount and interest for three months.

Check the Credentials of the Pawn Shop

When you have finalised the pawn shop for pawning your vehicle, ensure checking the credentials of a pawn shop and find out if they hold appropriate licenses to run the pawn shop.

Redeeming or Forfeiting Your Vehicle

If you don’t turn up to redeem your vehicle at the end of the loan’s duration, the pawnbroker can sell it to recover the loaned amount and interest. Thus, it is vital to ensure you redeem your vehicle when it matures.

The Bottom Line

When all the doors are closed in front of you for availing a quick short-term cash loan, still you can get a fast cash loan against your vehicle from an established and reputed vehicle pawnbroker near you.